Oil continues record slide despite Saudi talk of supply cuts

The slide also comes during signs of a softer-than-expected impact from US sanctions on Iran oil exports

The slide also comes during signs of a softer-than-expected impact from US sanctions on Iran oil exports

The bank added that it expected US crude production which is already at a record 11.6 million barrels per day (bpd), to break through 12 million bpd in 2019, making the United States "energy independent".

Both Brent Crude and West Texas Intermediate (WTI) saw gains of more than a dollar per barrel.

A cut in oil exports by Saudi Arabia - or a rise in oil prices - does threaten to provide political ammunition to newly empowered Democrats who have long signaled skepticism of OPEC.

Saudi Arabia plans to reduce oil supply to world markets by 0.5 million barrels per day in December, Khalid al-Falih, its Minister of Energy, Industry and Mineral Resource said on Sunday.

"Hopefully, Saudi Arabia and OPEC will not be cutting oil production", Trump wrote on Twitter.

Falih had stated that OPEC may need to cut output because oil markets may see an oversupply again next year.

Khalid al-Falih´s comments follow a meeting in Abu Dhabi at the weekend, where the OPEC group and its allies had already started laying the groundwork to reduce supply in 2019, reversing an nearly year-long expansion. The fall in price was attributed to the lower impact of US sanctions on Iran due to the exceptions it gave to India, China and other nations, as well the increased oil production by the US, Saudi Arabia and Russian Federation. America's Ashlee Banks reports.

Al-Falih, who on Sunday said the kingdom would cut production by over 500,000 barrels per day in December, said Monday at the Abu Dhabi International Petroleum Exhibition & Conference that Saudi Arabia had been giving customers "100 per cent of what they asked for". He noted that in 2015 when OPEC lifted its output by about 2 million barrels a day, just over 2% of global demand at the time, oil prices decreased by roughly a third, while oil stocks experienced a simultaneous plunge.

A majority of OPEC and allied oil exporters support a cut in the global supply of crude, Oman Oil Minister Mohammed bin Hamad al-Rumhi was cited by Reuters as saying.

The United States has upped production of shale oil, while Saudi Arabia, Russia and others have raised supplies of crude amid signs of slowing demand.

The oil producers have made a decision to act after oil dropped as much as 20 percent in one month, after hitting a four-year high in early October.

Although there are signs of a glut emerging in the US, the Saudi minister said Sunday it was too early to talk about coordinated production cuts within OPEC+. Next month OPEC will meet and it is in this meeting we will get some from numbers of any supply cuts for 2019. "We hope that markets will calm down".

Producers implemented large cuts starting at the beginning of 2017 and managed to push up oil prices from below $30 a barrel to over $85 in October, strongly improving their revenues.

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